Question: The net present value ( NPV ) helps a company decide whether it should pursue certain investment opportunities or not. Which one of the following

The net present value (NPV) helps a company decide whether it should pursue certain investment opportunities or not. Which one of the following would be the decision criteria for a large shopping mall if the NPV is found to be 0?
Select one:
a.
Accept the initial investment amount and an addition to the value of the business can be sustained by the cash flow of the project.
b.
Accept the initial investment amount can be sustained by the cash flow of the project, although no addition to the value of the business is made.
c.
Reject the initial investment amount cannot be redeemed by the cash flow of the project.
d.
Reject the initial investment amount can be sustained by the cash flow of the project, but no addition to the value of the business is made

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!